Can anyone tell me why land's not depreciated?
K.S.Sashidhar (Article Assistant) (91 Points)
01 February 2010Can anyone tell me why land's not depreciated?
CA Dhiraj Ramchandani
(CA, M. com)
(10823 Points)
Replied 01 February 2010
Amir
(Learner)
(4016 Points)
Replied 01 February 2010
Dear KS Shashidhar,
Depreciation is a measure of the wearing out, consumption or
other loss of value of a depreciable asset arising from use, effluxion of
time or obsolescence through technology and market changes.
Land cannot be said to loose it's value on account of use, efflux of time or technology changes or market changes
Further that doesn't mean that Lands value can never decrease, the resultant decrease on account of factors other them mentioned above will be said as"revaluation loss"
Max Payne
(employed)
(2569 Points)
Replied 01 February 2010
Land does not have a measureable useful life, actually it is infinite.
Left alone, life and quality of land does not deteriorate.
For land used by a business man, any adverse change in the land will be a loss, and not always a measurable/estimable expenditure...
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